An increase in revenues increases net income, and net income increases stockholders’ equity. True or false?.

Sleep Cheap is a private camping ground near the Boulder Peak Recreation Area. It has compiled the following financial informati

Fittoniya [83]

Answer and Explanation:

a. The net income should be

Service Revenue $132,000

Sales Revenue $25,000

Total revenues $157,000

Less: Total expense -$133,000

Net income $24,000

b.

The preparation of the retained earning statement is presented below:

Retained Earnings Statement

For the year ended December 31,2022

Retained Earnings, January 1 $5,000

Add: Net income $24,000

Less: Dividends -$8,000

Retained Earnings, December 31 $21,000

The preparation of the balance sheet is presented below:

Balance Sheet

December 31,2022

Assets

Cash $13,500

Supplies $2,500

Equipment $108,000

Total Assets $124,000

Liabilities and Stockholders' Equity

Liabilities

Accounts Payable $13,000

Notes Payable $50,000

Total Liabilities $63,000

Stockholders' Equity

Common Stock $40,000

Retained Earnings $21,000

Total Stockholders' Equity $61,000

Total Liabilities and Stockholders' Equity $124,000

6 0

3 years ago

Calculate the balance of cash using a bank reconciliation (LO4-5) Spielberg Company's general ledger shows a checking account ba

Stella [2.4K]

Answer:

A. Bank balance per reconciliation $22,789

Company balance per reconciliation $22,789

B. No journal entry required

Dr Service fees expense $41

Cr Cash $41

Explanation:

A Preparation of a bank reconciliation to calculate the correct ending balance of cash on July 31, 2021

Bank Reconciliation

July 31 2021

Bank Cash balance

Per bank statement $22,364

Add Deposits outstanding $1,745

Checks outstanding -$1,320

Bank balance per reconciliation $22,789

Company Cash balance

Per generall edger$ 22,830

Service Fees -$41

Company balance per reconciliation $22,789

B. Preparation of the journal entry to adjust the balance for cash.

No journal entry required

Dr Service fees expense $41

Cr Cash $41

4 0

3 years ago

Diamond Design Company makes custom chairs for individual customers. On September 1, there was one job in process, Job 243, with

Romashka [77]

Answer:

Net operating income= $3,152

Explanation:

Giving the following information:

Job 245 was completed on September 14 and the client was billed at cost plus 40%.

Job 245:

Direct Materials= $6,700

Direct Labor= $2,300

Overhead= 0.60*2300= $1,380

Total cost= $10,380

Sales= 1.4*10380= $14,532

Cost od goods sold= 10380

Gross profit= 4152

Selling and administrative expense= 1000

Net operating income= $3,152

3 0

3 years ago

Do certain kinds of firms need to stress particular areas of operations management? Explain.

sdas [7]

Answer:

Yes. Certain kinds of firms do need to stress particular areas of operations management. Operations management is a vast area which consists of several departments such as supply chain management, logistic management, warehouse management, data management, inventory management and etc.

Companies, depending upon the kind of product and services they are supplying, need to figure out which department they are lacking in and should stress upon it.

For example shipment companies might need to focus on logistical affairs to strengthen their services.

7 0

3 years ago

Neighbors Bicycles needed more bicycle seats. It decided to order gel seats in addition to the traditional seats it had always o

Eva8 [605]

Answer:

The answer is: Modified rebuy

Explanation:

A modified rebuy happens when a company (or an individual consumer) will buy a product or service which it has already purchased in the past. But now the company wants to change either the supplier, the product's specifications (e.g. gel seats) or the terms of the sale.

7 0

3 years ago